If you are in the market for T1 connections, then one of the aspects that you must deal with are T1 costs. Here are a few things that you can keep in mind.

It is high

There is no getting away from the fact that T1 lines are more expensive than quite a few other options. This is especially true if you compare T1 costs with the costs of:

• cable connectivity
• DSL and a few other options.

The question then is pertinent - why is it is more costly than other options?

Its features

T1 costs are traditionally higher than connection options such as DSL because T1 lines can offer:

• Greater data carrying capacity
• Ubiquity because a T1 line can be made available almost anywhere
• Availability because a service provider can promise 24 x 7 connectivity
• support for advanced applications such as voice over Internet protocol and even mail and web servers.

A T1 line is also costly because the telecom carrier will need to factor in connectivity to a web server. Typically and simply put, the total costs of T1 connectivity will therefore be the charges by the Internet service provider and the telephone company put together.

How does cost get structured?

As mentioned before, T1 costs are all about the charges levied by the Internet service provider and by the local telephone company. This is known as access port and local loop costs. Access port costs are the charges that are payable to tap into the network of the carrier. Local loop costs are the charges levied by the local telephone company that allows them to carry the signal to a customer’s location from the closest Central office. T1 lines also need a unique T1 card or T1 router.

More than costs!

Where a T1 lines scores above most other connections is in the fact that it can help integrate voice and data. Typically, a T1 connection is characterized by:

• its ability to carry 24 digitized voice channels or
• data at a rate of 1.544 megabits per second.

It also gives customers the flexibility to handle voice and data transmissions between these 24 channels. Thus, a user of T1 can put up to 24 phone lines with dedicated long distance service facilities on a single T1 line and still enjoy high-speed Internet connectivity.

How can you bring the costs down?

While there is no denying that T1 costs are, traditionally, higher than most other connectivity solutions, you can streamline it by going in for a longer commitment. In some cases, service providers will provide the T1 equipment free of cost if they get a long term commitment from you. If there are plenty of T1 service providers in the market, then you can further bring down the costs because the level of competition would make it a buyer’s market! Thus, purchasing a T1 line is an extremely good option when it comes to data connectivity. As a business owner, you must look at T1 costs in a very objective manner simply because there is a lot of value to be derived from this solution.